In 2024, Singapore’s Central Business District (CBD) Grade A office rents grew by approximately 2% and are projected to continue this trend in 2025. This growth is attributed to the limited availability of new office spaces and sustained demand for premium locations. The report also notes a slight rise in office vacancy to 9.4% in 2024, largely due to the addition of the 1.25-million-square-foot IOI Central Boulevard Towers.
Chris Carver, Executive Managing Director and Head of Asia-Pacific Valuation & Advisory at Newmark, stated, “Increasing office-using employment and declining office supply should help to better balance the market’s supply and demand over the next 12 months, supported by steady economic growth and export growth.”
Newmark has unveiled a report forecasting a positive outlook for Singapore’s office leasing market in 2025, buoyed by stable economic growth and a constrained supply of new office spaces. The study, conducted by Newmark’s Valuation & Advisory and Leasing & Brokerage teams, anticipates moderate rental growth and increased demand for high-quality office spaces.
The “Flight to Quality” trend remains a significant factor in office relocations, as businesses focus on talent acquisition and retention. Key service sectors, including information and communications, financial, and professional services, experienced growth in 2024 and are expected to drive further office demand in 2025.
Newmark’s comprehensive analysis underscores the resilience of Singapore’s office market, with implications for continued investment and development in the sector.
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